Mumbai : The City and Industrial Development Corporation (CIDCO), setting a new record for violation of rules, had allotted the construction of Central Park to only one bidder and later, violating the conditions of the tender, allotted a mobilisation advance of more than Rs 1 crore to that single bidder. Giving out mobilisation advances to contractors for irrigation projects is already steeped in controversy as this is illegal.
In December 2007, CIDCO invited tenders for the construction of entrance buildings and food plazas at Central Park, Kharghar, at an estimated cost of Rs. 9.57 crore. In response, only one bidder – Klassic Construction, sent in a quote at a rate of 94 per cent above the estimated cost. CIDCO opened the price bid in April 2008 and negotiations were conducted in August 2008, which was approved by the Board of Directors (BoD) in October 2008.
The work was awarded to Klassic Construction, after negotiating the quoted price down to 72 per cent above estimated cost – Rs. 16.43 crore in January 2009.
“We observed that as only a single tender was received and the offer was also on higher side, the company should have re-invited tenders to get more competitive rates. CIDCO also released Rs. 1.60 crore mobilisation advance in violation of tender conditions in January 2009, which means immediately after negotiating with Klassic. The work scheduled to be completed by May 2010, had not been completed even in 2012.
As per rules, CIDCO should have recovered compensation for delay (CFD) at 5 per cent of contract value, which is Rs 82 lakh. But only Rs 25 lakh has been recovered till June 2012. CIDCO had not prepared any detailed project report (DPR) for the project, hence revenue forgone could not be ascertained in audit,” the CAG pointed out.
“The CIDCO management stated that work as well as 10 per cent interest- free mobilisation advance was awarded with the approval of the board. The delay in completion of work was on account of frequent stoppage of work due to thefts of construction materials from the site and protest by the local people during the period from May to August 2011.
This reply is not tenable as acceptance of a single offer and allowing interest free mobilization advance lacked transparency. Also, there was no evidence of any protest by locals,” said the CAG, nailing CIDCO’s lie.
Non-recovery of
Rs 5 cr CFD from Shirke Construction
The mass housing scheme at Ulwe was envisaged to facilitate houses to economically weaker sections. The company, in August 2009, awarded a lump sum turnkey contract to BG Shirke Construction Technology Private Limited (BGSC) for design and construction of 1,344 nos. of tenements at Ulwe, with pre-fab technology, at a total cost of Rs 65.97 crore. The work, scheduled to be completed by May 2011, was completed in October 2011, with a delay of 22 weeks. The delay in completion was condoned and compensation for delay (CFD), amounting to Rs. 4.9536 crore was not levied. This fact was also not brought to the notice of board of directors.
Further, there was abnormal delay in the marketing and allotment of apartments.
The management stated that the main reasons for delay in construction were obstruction by local villagers, non-availability of sand and water logging at site due to rains, “which were beyond the control of the BGSC.”
The reply is not tenable as there was no documentary evidence of protests from villagers and it was the responsibility of the BGSC to make sand available for de-watering, during the course of the contract.
As regards non-availability of sand, the High Court, Mumbai, had banned sand mining for only one month. Further, water-logging was incidental to rain and the contract period of 21 months included monsoon season as well,” the CAG pulled up CIDCO.
Pramod Chunchuwar
